Cash-out is all about releasing cash / equity that you have tied up in your home allowing you to go on that dream holiday, purchase a new car, renovate your home or put your cash into some other worthwhile venture.
Maybe you have paid off a chunk of you mortgage over the last few years or house prices have gone up, or both.
Your equity, essentially the difference between what the house is worth and what you owe, can be accessed through an equity release loan. Ideally, you don’t want your total borrowings against your home to be greater than 80% of the value of your home, as at this point you may become liable for Lenders Mortgage Insurance, known as LMI. This cost can run into thousands of dollars and is to be avoided if at all possible, but a full review of your home loan requirements will help to establish the options that are open to you.
Sometimes, it is possible to refinance your existing home loan to a sharper rate, take cash out and see no change in monthly repayments. Obviously, this all depends upon the current interest rates that you are paying, and the term of the loan.
To get a better idea of the options open to you, give me a call on 0499 658 710